A fiduciary gives you insights into your finances that effectively help you fight a history of toxic debt. Accountants understand financial concepts and can communicate those ideas in simple, understandable terms. With a fiduciary, you’ll get help in navigating the legal parameters for any class of debt you hold. However, you should be fully aware of how your accountant will work and what they’ll do. Below are steps an accountant will take to get rid of your debt. Creating a Financial Portfolio Your certified public accountant (CPA) needs a clear overview of your finances before evaluating them adequately. A financial portfolio is created by forming a list of all of your assets, which even includes a dog if you have one. A professional fiduciary will then list your income sources along with any financial liabilities you have. Insurances, investments, and retirement funds are things to account for within a financial portfolio. As you help an accountant to organize your finances, be honest about any outstanding bills and the debt you have. Starting with Student Loans Most CPAs begin to target the debt of their clients by immediately looking at their student loans. Student loans often account for the most significant portion of the debt that borrowers have, so accountants target it to get rid of the bulk of money owed. Or, if you owe $25,000 in debt, and 75% of it is from a car, then your accountant will work to reduce your vehicle debt first. Strategizing a Payment Plan The general picture created by your outstanding debt and financial portfolio gives an accountant sufficient data to form a payment strategy. Here are some of the strategic points that an accountant can use to devise a suitable plan that pays off your debts: Budgets—An accountant can substantially improve how you spend money by verifying your needs versus your wants. Taxes—Tax accountants are trained to allocate your tax returns to pay off any outstanding debts that you have. Prioritizing—Above all, your accountant determines how to prioritize your payments so that the damaging debts you owe are paid off first.